BizRadio’s Frishberg barred from investment business by SEC

Daniel Frishberg, who once presided over an investment advisory business and a fledgling, multi-city AM radio network, has been barred from the investment business by the Securities and Exchange Commission. Frishberg, who used to broadcast as “The Money Man” on BizRadio,was sued by the SEC in March for touting promissory notes in other private companies he controlled without disclosing the conflicts of interest to investors, the SEC claimed. Frishberg knew the other companies, which included BizRadio, were in such poor financial condition that it was unlikely the notes would be repaid, the SEC found.

That case was settled in March with Frishberg agreeing to pay a $65,000 fine with admitting or denying wrongdoing. This week, the SEC issued an administrative order barring Frishberg from association with any broker, securities dealer or investment adviser.

Last year, the receiver who took over Kaleta Capital Management, run by BizRadio co-founder Albert Kaleta, declared that Frishberg and Kaleta perpetuated “a blatant, intentional fraud” by transferring investor funds from Kaleta Capital to the radio network without revealing that BizRadio’s assets were pledged to third parties.

The demise of BizRadio and its two co-founders began in late 2009, when the SEC first took action against Kaleta Capital. Meanwhile, the SEC filed its final judgment against Kaleta last week, barring him from future violations of securities laws and requiring that he repay investors $1.5 million.